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2

You need to provide more information. What update is failing to be installed. Based on a Google search the problem is connected to WSUS I would wipe the system to resolve this problem.
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RamhoundOct 17 '12 at 11:44

Right you are, the system is connected to WSUS...
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AntonioOct 17 '12 at 11:53

Updates can still be installed, but only from Windows Update ("Check online for updates from Windows Update"). The real issue is that updates are no longer automatic. Fine for security aware users, but not for normal users.
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BrianSJan 25 '13 at 22:05

I get this error when updating at work, where there are both WSUS and proxy issues that block updates. However, clicking on the bottom link of your screen shot "Check online for updates from Windows Update" is more reliable and almost always gets thru.